Noble County

Blue Racer Midstream | CNX Resources | CONSOL Energy | Energy Companies | Energy Services | Industrywide Issues | Noble County | Ohio | Pipelines

CONSOL’s Excellent Q3 Results, New Deal with Blue Racer Midstream
October 16, 2013October 16, 2013

CONSOL Energy issued an extensive operations update yesterday, for the quarter ending Sept. 30. The company says they sold more natural gas (and coal) than they had expected to during the quarter. They also said they have just signed an agreement with Blue Racer Midstream to ramp up infrastructure buildout for CONSOL’s drilling in Ohio’s wet gas area–specifically in Noble County, OH.

During 3Q13 CONSOL drilled 15 horizontal wells–12 of them targeting the Marcellus Shale, 3 of them in the Utica Shale. Here’s everything you ever wanted to know about CONSOL’s northeast drilling for 3Q13…
Read More “CONSOL’s Excellent Q3 Results, New Deal with Blue Racer Midstream”
Energy Companies | EnerVest | EV Energy Partners | Guernsey County | Harrison County | Lease & Royalty Payments | Noble County | Ohio | Utica Shale

EVEP/EnerVest Cuts Deal to Sell 22.5K OH Utica Acres for $284M
August 9, 2013August 9, 2013

In September last year, EV Energy Partners/EnerVest put more than a half million acres of Ohio Utica Shale acreage on the market. Near the end of last year, a deal for 104,000 of those acres seemed to be almost done, but in April of this year, the deal fell apart (see EV Energy Partners Deal to Sell 104K Utica Acres Dead, What Now?). EVEP then changed gears and said instead of putting big blocks up for sale, they’ll look at selling off smaller chunks (see EV Energy: Changing from Big Deals to Small for Utica Land Sale). Looks like the change in strategy worked.

Today, EVEP announced they’ve made a new deal to sell 22,535 acres in Guernsey, Harrison and Noble counties in Ohio for $284.3 million to an unnamed buyer. According to EVEP, the deal works out to be a very high $12,900 per acre. We ran the math and came up with $12,616 per acre. Either way, EVEP is getting a LOT of money for unloading Utica Shale acreage they don’t want. This deal is scheduled to close in the third quarter–the next few months. Let’s see if this one actually happens.

The announcement from EVEP/EnerVest (with a map of the acreage sold):
Read More “EVEP/EnerVest Cuts Deal to Sell 22.5K OH Utica Acres for $284M”
Antero Resources | Energy Companies | Guernsey County | Noble County | Ohio | Utica Shale

MWCD to Sell 138M Gallons of Seneca Lake Water for Utica Drilling
July 22, 2013July 22, 2013

Last February, the Muskingum Watershed Conservancy District (MWCD) signed a lease with Antero Resources to lease 6,700 acres under and around Seneca Lake. The MWCD got a $40.3 million signing bonus, plus 20% royalties (see Muskingum Watershed District Signs with Antero for $40.3M Bonus). Last week, the MWCD voted to sell up to 138 million gallons of water from Seneca Lake to Antero so they can use it in their drilling and fracking operations, making another potential $828,000.

We’ll lease you the land and sell you the water to drill it too. Cool…
Read More “MWCD to Sell 138M Gallons of Seneca Lake Water for Utica Drilling”
Antero Resources | Energy Companies | Energy Services | Industrywide Issues | Noble County | Ohio | Pipelines | Rockies Express Pipeline | Utica Shale

REX Reverses Pipeline Flow from OH for Mystery Utica Customer
July 16, 2013July 16, 2013

What a difference a year makes. Last August, RBN Energy President Rusty Braziel said the Rockies Express Pipeline (REX), which originates in Rio Blanco County, Colorado and sends gas to Monroe County, Ohio, was in danger of drying up because there’s so much shale gas coming from the Marcellus. His prescription? Turn it around and send gas the other way (see REX NatGas Pipeline Faces Stiff Competition from Marcellus). Looks like REX has taken Rusty’s advice.

In a press release issued yesterday, REX announced they have a binding agreement with an unnamed “large Utica Shale producer” who wants to use the pipeline to ship 200,000 decatherms of processed natural gas per day to the Midcontinent region of the country. That is, REX is reversing the flow for at least part of the pipeline. And who might the unnamed “mystery” producer be? We think we know…
Read More “REX Reverses Pipeline Flow from OH for Mystery Utica Customer”
Energy Companies | Noble County | Ohio | Rex Energy | Utica Shale

Rex Energy Production Numbers for 3 Utica Wells in Noble County
July 10, 2013July 9, 2013

Rex Energy has just released production numbers for its first three Warrior South Prospect wells in the Ohio Utica Shale (Noble County). Rex’s CEO, Tom Stabley, called the results “strong” and “impressive,” and indeed they are good numbers. The wells produced on the on the order of 4.2-4.7 million cubic feet of methane per day, 724-763 barrels of natural gas liquids per day, and 228-247 barrels of condensate per day. While we’ve seen better methane flow rates from other Utica wells, all three production metrics together (methane, NGLs and condensate) make these wells very profitable indeed.

The full Rex announcement from yesterday:
Read More “Rex Energy Production Numbers for 3 Utica Wells in Noble County”
Belmont County | CONSOL Energy | Energy Companies | Guernsey County | Harrison County | Jefferson County (OH) | Noble County | Ohio | Utica Shale

CONSOL’s View of Best Counties to Drill in Ohio Utica Shale
June 17, 2013June 17, 2013

Last Friday at a Columbiana (OH) Area Chamber of Commerce event, Harry Schurr, general manager of Utica Shale operations for CONSOL Energy, spilled the beans on which Ohio counties he believes will see drilling for oil and gas in the near- and medium-term. He outlines where oil drilling is not going to take off (not enough pressure to pump it out), and where gas drilling will not take off until gas prices go higher. But like the story of Goldilocks, there are a few Ohio counties where the conditions (i.e. large volumes of condensate) are “just right” for drillers…
Read More “CONSOL’s View of Best Counties to Drill in Ohio Utica Shale”
EMG | Energy Services | Harrison County | Industrywide Issues | MarkWest Energy | Noble County | Ohio | Pipelines | Processing Plants | Utica Shale

MarkWest Announces Third Processing Plant in Noble County, OH
May 31, 2013May 31, 2013

MarkWest Energy is the biggest midstream company (pipelines and processing plants) in the Marcellus Shale. They’ve also set their sights on becoming the biggest midstream player in the Utica Shale, and they’re well on their way. Yesterday, MarkWest announced their joint venture with EMG, called MarkWest Utica, will build a third cryogenic gas processing plant at its Seneca processing complex in Noble County, Ohio. The new plant, which will add an additional 200 million cubic feet per day of capacity (MMcf/d), is scheduled to be completed in about a year and will service wet gas from Antero Resources’ Utica Shale wells. The first two Seneca plants will be online later this year.

Apparently MarkWest has cleared up any funding issues for building the new plant. Previously the MarkWest Utica jv ran low on money while building the first two Seneca plants and scrambled to get more cash, which they did in February (see MarkWest: We Just Banked $450M from EMG, Another $2.8B Available). Funding problems seem to be behind them now and it’s full speed ahead. Here’s the MarkWest press release which also gives a quick update on their Cadiz processing plant along with a fairly complete list of their customers for all of their Utica processing plants:
Read More “MarkWest Announces Third Processing Plant in Noble County, OH”
Carroll County | Columbiana County | Noble County | Ohio | Statewide OH | Utica Shale

Ohio Hits Milestone: 100 Utica Wells Now Online & Producing
May 29, 2013May 29, 2013

As of May 25, Ohio has issued 686 Utica Shale drilling permits. Of the permits now issued, 335 (half) of the wells have been drilled. And of the half now drilled, Utica has 100 wells (15% of those permitted, 30% of those drilled) now online and producing natural gas, gas liquids and oil. Hitting the 100-mark is a true milestone.

During the week of May 19-25, the Ohio Dept. of Natural Resources (ODNR) issued 10 new permits. Here’s where the permits were issued, and the companies that received them:
Read More “Ohio Hits Milestone: 100 Utica Wells Now Online & Producing”
Energy Companies | Guernsey County | Noble County | Ohio | Rex Energy | Statewide OH

Rex Energy OH Utica Wells go Toe-to-Toe with Gulfport Wells
March 20, 2013March 20, 2013

So far, we’ve had precious little in the way of well production numbers from the Ohio Utica Shale. The numbers we have had are encouraging. On Monday, Rex Energy released well production numbers for their “Warrior South Prospect” wells in the Ohio Utica, and the numbers look very good indeed. From two wells in Guernsey County and one in Noble County, Rex is reporting an average daily production of around 8 million cubic feet of natural gas, 500 barrels of condensate (natural gasoline), and 1,200 barrels of natural gas liquids (mostly ethane), per day for each well.

Below are the details from Rex, along with an embedded copy of their company presentation just updated (March 2013) which shows many more details, including maps and a very interesting table (on page 18) that compares Rex’s three Ohio wells with other drillers’ wells, including Ohio’s largest producing wells drilled by Gulfport. When converted to BTUs produced—which takes into account not only methane, but also gas liquids, condensate and oil—the Rex wells are among the best producing wells in the state…

Read More “Rex Energy OH Utica Wells go Toe-to-Toe with Gulfport Wells”
Energy Companies | Energy Services | Guernsey County | Harrison County | Industrywide Issues | MarkWest Energy | Noble County | Ohio | PDC Energy | Pipelines | Processing Plants | Utica Shale

MarkWest Signs Deal with PDC Energy for OH Utica Shale, Etcetera
March 19, 2013March 19, 2013

Yesterday, PDC Energy announced they would nearly double their drilling budget for the Ohio Utica Shale this year (see PDC Nearly Doubles Utica Shale Drilling Budget for 2013). PDC’s announcement mentioned they will do a deal with MarkWest for pipelines and processing. Last night, MarkWest issued their announcement to say they’ve officially signed a deal with PDC to provide “gathering, processing, fractionation, and marketing services in the Utica Shale.” In their announcement, MarkWest took the opportunity to remind everyone this is the fourth Utica Shale driller they’ve signed up in the past nine months—the other three are Gulfport, Antero and Rex Energy—and to chronicle the work they’re doing at their Cadiz and Seneca processing facilities in the Utica Shale.

Read More “MarkWest Signs Deal with PDC Energy for OH Utica Shale, Etcetera”
Crosstex Energy | E2 | Energy Services | Enerven Compression Services | Industrywide Issues | Monroe County | Noble County | Ohio | Pipelines | Processing Plants | Utica Shale

Crosstex Energy to Build New Compressors, Processing Plant in OH
March 6, 2013March 6, 2013

Crosstex Energy has formed a joint venture with Enerven Compression Services called E2 to build and operate new compressor stations and a condensate processing plant in the Ohio Utica Shale. In their announcement today, Crosstex says the company has set up a new $75 million line of credit and will invest an initial $50 million from it in the new JV. First up is building two compressor stations in Noble and Monroe counties in Ohio—they already have an unnamed customer lined up for those. After that, they’ll build a condensate (“natural gasoline”) processing plant. Crosstex will own 93% of the JV and Enerven will own the other 7%.

The Crosstex announcement from this morning:

Read More “Crosstex Energy to Build New Compressors, Processing Plant in OH”
Antero Resources | Energy Companies | Guernsey County | Hydraulic Fracturing | Industrywide Issues | Lease & Royalty Payments | Noble County | Ohio

Muskingum Watershed District Signs with Antero for $40.3M Bonus
February 18, 2013February 18, 2013

Nearly a month ago MDN told you the directors of the Ohio Muskingum Watershed Conservancy District (MWCD) would consider a deal with Antero Resources to allow drilling and fracking on 6,700 acres under and around the Seneca Lake area (see OH Muskingum Watershed District to Sign Drilling Lease in Feb.). At the time, details of the deal were still not disclosed, but we theorized based on past deals the MWCD would probably make around $40 million in new lease payments.

The directors at the Watershed District voted to pass the deal last Friday. The amount they’ll get for a signing bonus? $40.3 million—or $6,200 per acre for leasing 6,500 acres (acreage number was adjusted down a bit). Plus 20% royalties.

Read More “Muskingum Watershed District Signs with Antero for $40.3M Bonus”
Anadarko | Athens County | Encore Energy | Energy Companies | Guernsey County | Lease & Royalty Payments | Meigs County | Monroe County | Morgan County | Noble County | Ohio | Utica Shale | Washington County (OH)

Encore Energy to Anadarko: We’ve Got OH Land for You
February 14, 2013February 14, 2013

A for-profit company that pools acreage from both landowners that want to lease their land, and from energy companies with leases who want to re-sell those leases, is trying to get the attention of Anadarko and other drillers in the Ohio Utica Shale. Encore Energy issued a press release yesterday announcing they have land available for lease. They specifically tap Anadarko on the shoulder to tell them they have 1,300 Utica Shale acres “just 3 miles” from land they’re already drilling on in Washington County, OH.

Encore is shopping more than 18,000 acres across a number of Ohio counties, including Morgan, Washington, Noble, Guernsey, Monroe, Athens and Meigs. Here’s their “hey Anadarko, pay attention” press release:

Read More “Encore Energy to Anadarko: We’ve Got OH Land for You”
Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Monroe County | Noble County | Ohio | Triad Hunter | Utica Shale | Washington County (OH)

Magnum Hunter Ramps up in OH Utica Shale with 4 Test Wells
January 23, 2013January 23, 2013

The Marcellus Shale is the powerhouse workhorse, but the Utica Shale continues to be white hot for development. Magnum Hunter Resources and its subsidiary Triad Hunter announced yesterday the company will drill a minimum of four Utica “test wells” in 2013. Provided they find a good result, they plan “further development” of their 107,000 gross acres of Utica Shale leases later in 2013—which connotes they’ll drill those test wells early this year. In fact, Triad Hunter is already working on their first Utica well pad in Washington County, OH. A second well pad in Washington County is already in the planning stages, as is a well pad in Noble County.

Magnum Hunter’s press release outlining their plans for Ohio, including references to new OH Marcellus wells just completed and new pipelines on the way for some of their existing OH Marcellus wells:

Read More “Magnum Hunter Ramps up in OH Utica Shale with 4 Test Wells”
Antero Resources | Energy Companies | Guernsey County | Hydraulic Fracturing | Industrywide Issues | Lease & Royalty Payments | Noble County | Ohio

OH Muskingum Watershed District to Sign Drilling Lease in Feb.
January 21, 2013January 21, 2013

Last November, MDN told you that the Ohio Muskingum Watershed Conservancy District (MWCD), the largest watershed district in the state covering about 20% of Ohio’s landmass, had entered negotiations with Antero Resources to allow drilling and fracking under MWCD land around Seneca Lake (see OH Muskingum Watershed District Seeks Lease with Antero). Everything but the final price is now done, and the proposed lease (copy embedded below) will be voted on at the next board meeting of the MWCD on Feb. 15.

The lease, as written, will allow drilling under but not on 6,700 acres of property in Guernsey and Noble counties. Antero will have to drill from adjacent properties to reach the land—no disturbance of the surface will be permitted. How much will the MWCD get for a signing bonus and royalties?

Read More “OH Muskingum Watershed District to Sign Drilling Lease in Feb.”
Carrizo Oil & Gas | Energy Companies | Guernsey County | Noble County | Ohio | Tuscarawas County | Utica Shale

Carrizo’s 2013 Plans: Drill in Marcellus, Buy Acreage in Utica
January 15, 2013January 15, 2013

Carrizo Oil & Gas announced their 2013 spending plans today. Drilling activities will see a $500 million investment by Carrizo, with $70 million of that allocated to drilling in the Marcellus Shale. Also, Carrizo announced that yesterday they closed on an option to pick up more acreage from Avista Capital in the Ohio Utica Shale for $63 million.

The Utica deal means Carrizo now owns 14,000 net acres located in Guernsey, Noble and Tuscarawas counties in Ohio—although they’ve not allocated money to drill in the Utica for 2013.

Read More “Carrizo’s 2013 Plans: Drill in Marcellus, Buy Acreage in Utica”